KKR 400M Dollar Bet on HCG in India Cancer Care
KKR’s $400M Bet on HCG: A New Chapter in India’s Cancer Care Revolution
India’s healthcare landscape is witnessing a transformative shift as global investment firm KKR acquires a controlling stake in Healthcare Global Enterprises (HCG) for $400 million. With this deal, KKR will assume sole control, while HCG’s founder, Dr. BS Ajaikumar, transitions to a non-executive chairman role, focusing on clinical and academic R&D. This move signals a significant boost to India’s oncology sector, promising enhanced infrastructure and patient care.
A Bold Investment in India’s Cancer Care Leader
In a deal valued at INR445 per share, KKR is set to acquire up to 54% of equity in HCG from CVC’s Asia V fund. Under SEBI’s Takeover Regulations, an open offer will follow, allowing KKR to purchase additional shares from public shareholders, potentially increasing its stake to 77%.
Founded in 1989, HCG has been a pioneer in India’s fight against cancer, operating 25 hospitals across 19 cities. With over 2,500 beds, nearly 100 operating theatres, and 40 cutting-edge linear accelerator machines (LINACs), HCG is well-positioned to redefine cancer treatment in the country.
What This Means for India’s Healthcare Sector
This acquisition is more than just a financial transaction—it’s a vote of confidence in India’s rapidly growing healthcare sector. Akshay Tanna, partner and head of India Private Equity at KKR, emphasized that their investment aligns with KKR’s strategic focus on healthcare in India.
“As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services,” Tanna said.
A Track Record of Healthcare Investments
KKR is no stranger to India’s healthcare industry. Over the years, it has backed leading names such as Max Healthcare, Baby Memorial Hospital, Healthium, Infinx, JB Pharmaceuticals, and Gland Pharma. With HCG now under its wing, KKR is poised to make a lasting impact on cancer treatment and research in the country.
The Road Ahead for HCG
While KKR brings its global expertise and financial strength, Dr. Ajaikumar’s continued involvement in clinical and academic R&D will ensure that HCG stays at the forefront of cancer treatment innovations. The investment is expected to drive expansions, introduce advanced treatment technologies, and improve accessibility to quality cancer care across India.
HCG has already shown strong financial growth, with revenues reaching INR5,586 billion in Q3 2024—a 19% increase from the previous year. With KKR’s backing, the company’s trajectory seems even more promising.
For cancer patients in India, this deal could mean better treatment facilities, more advanced technology, and greater accessibility to specialized care. KKR’s investment isn’t just a business decision—it’s a potential game-changer in the fight against cancer in India.
As the dust settles on this historic acquisition, all eyes will be on how KKR leverages its expertise to elevate HCG into a global leader in oncology care. One thing is clear: India’s healthcare sector is entering a new era, and the future looks hopeful.